Japan’s financial firms move ahead with blockchain bond and payment projects

Expanding beyond the Ethereum Virtual Machine (EVM) domain, Malaysia-headquartered Etherscan has officially acquired Solscan, a prominent block explorer within the Solana ecosystem.Photo by Shubham’s Web3 on UnsplashEnhancing cross-chain analysisThe acquisition, announced earlier this week, signifies a noteworthy development within the blockchain industry and is poised to bring about a new interface aimed at enhancing cross-chain analysis. Solscan, based in Singapore with its primary team in Vietnam, was previously majority-owned by TomoChain Lab, a Singaporean blockchain software developer. The deal’s terms were not disclosed and the acquisition places Solscan in the same league as Polygonscan within the family of Etherscan block explorers. Diversifying product offeringEtherscan, established in 2015, stands as one of the earliest crypto projects, initially focusing on the EVM space. The platform offers an explorer-as-a-service product for blockchain explorers, with the acquisition of Solscan marking a significant step in diversifying its offerings. Since its inception in 2021, Solscan has risen as a leading explorer in the Solana ecosystem, catering to over three million monthly users. Providing services such as detailed address, token, transaction information, APIs, dashboards and NFT metadata, Solscan mirrors Etherscan’s services but is tailored for the Solana network. The merger between Etherscan and Solscan is anticipated to bring forth a series of enhancements and innovations, with both platforms benefiting from the integration of additional features. The roadmap for this collaboration outlines improvements in user interfaces, navigation and overall accessibility, promising an enriched user experience. Solscan, in its announcement, assured its commitment to the Solana community, vowing to maintain unparalleled blockchain exploration services. The shared vision of Etherscan and Solscan revolves around providing what Etherscan termed “credibly neutral and equitable access to blockchain data,” underlining their commitment to transparency and fairness in the blockchain space. Matthew Tan, CEO and founder of Etherscan, expressed excitement about the acquisition and highlighted the alignment of Solscan’s expertise in making blockchain data accessible and user-friendly with Etherscan’s mission. The acquisition is expected to contribute significantly to the broader blockchain ecosystem. Solscan serves as a crucial player in the Solana ecosystem, an Ethereum alternative. The platform assists users in viewing information within the Solana blockchain, managing accounts, tracking transactions and exploring investment opportunities across various crypto platforms. Solana resurgenceThis deal comes at a time when Solana’s momentum is evident, ending 2023 on a strong note. In December 2023, NFT sales on the Solana network surpassed those on Ethereum for the first time. Solana has experienced substantial growth in comparison to Ethereum, both in terms of its token’s value and against the U.S. Dollar. The fall of crypto exchange FTX had a large impact on Solana and its ecosystem as FTX had been heavily involved within that community and associated projects. The exchange still holds a sizable amount of locked SOL tokens. Following its collapse, the SOL unit price fell below $10. At the time of writing, it stands at $100. The acquisition of Solscan by Etherscan underscores the resurgence of the Solana ecosystem, with major players in the Web3 space recognizing the value of Solana-based technology. As both platforms collaborate, users can anticipate a more robust and interconnected blockchain exploration experience.  

Taiwanese cryptocurrency exchange under investigation for money launderingBitgin, a cryptocurrency exchange in Taiwan, is currently under police investigation for alleged money laundering, with its Chief Operating Officer, Yuting Zhang, arrested in connection to the infamous “88 Guild Hall” money laundering incident. The exchange is cooperating fully with the investigation and has assured users that its operations remain unaffected.Photo by Adam Jang on Unsplash‘88 Guild Hall’ scandalThe “88 Guild Hall” scandal, which unfolded from late 2021 to March 2022, implicated Zhang in a massive money laundering network. The controversy exposed a multi-billion dollar operation orchestrated by local businessmen Zhemin Guo and Chengwen Tu, utilizing a network of foreign exchange offices and crypto exchanges.Yuling Tsai, General Counsel of the Taiwan VASP Association, addressed the situation, stating: “This time, a member of the preparatory group was involved in the investigation case. The preparatory group immediately held a meeting and issued a public response. The members involved in the case also took the initiative to suspend participation in the work of the preparatory group.”Business as usualIn an official statement, Bitgin confirmed Zhang’s association with the scandal and clarified that the ongoing investigation has not disrupted its operations. The exchange emphasized its commitment to cooperating with authorities, providing all necessary assistance to facilitate a smooth investigation process.The statement reads: “At present, Bitgin is fully cooperating with the investigating unit and actively providing all necessary assistance to ensure the smooth conduct of the investigation and hopes that the facts can be clarified as soon as possible.”Bitgin also confirmed that in light of the charges, the COO has ceased all communications with counterparties.Focus on regulationTaiwan’s Financial Supervisory Commission (FSC) outlined earlier this year its intention to restrict the activity of non-compliant offshore crypto exchanges. While cryptocurrency exchanges are not officially regulated yet, local operators have taken cues from the FSC to move towards self-regulation. A preparatory group was formed in September with Bitgin participating as a founding member.While Taiwan still doesn’t have a regulatory framework in place, it has applied anti-money laundering (AML) regulation to crypto businesses. In August, leading crypto exchange Binance initiated steps to register for AML compliance in Taiwan.Earlier this year, Taiwanese officials suggested that they would foster self-regulation while proposing the classification of crypto regulations within their own unique business category. Efforts were furthered last month when legislators introduced a cryptocurrency bill for its inaugural reading.JPEX falloutBeyond Bitgin, Taiwan is grappling with the fallout from wayward crypto exchange JPEX, which is accused of orchestrating Hong Kong’s largest financial scam. The authorities raided the local office of JPEX and identified suspects involved in the alleged fraud. To compound matters, local police also uncovered a $320 million crypto money laundering operation earlier this month.The incidents highlight the ongoing challenges faced by regulators in the region as they strive to protect investors from fraudulent activities.As the investigation unfolds, the Taiwanese cryptocurrency industry, along with its self-regulatory initiatives, remains under scrutiny, emphasizing the broader need for regulatory frameworks to safeguard the interests of investors and maintain the integrity of the market.

Thailand has taken steps to tighten controls on digital asset mule accounts and overseas crypto peer-to-peer (P2P) platforms in an effort to combat cybercrime.Photo by Growtika on UnsplashLegislative amendmentsOn April 8, the Securities and Exchange Commission (SEC), a local regulator, published a statement explaining that the Thai cabinet has passed a resolution approving a number of amendments to the Southeast Asian nation’s digital asset business law and its cybercrime law. The regulator asserted that the amendments are designed to “strengthen measures against cybercrime and mule accounts, enhancing the security of public financial transactions and improving the effectiveness of combating online scams.” The amendments won’t become effective until such time as they are published in the Government Gazette of Thailand, an official public journal that acts as a primary source for Thai law. Mule accountsOne aspect that has been addressed is the enhancement of measures taken in an effort to block digital asset mule accounts. Criminals utilize mule accounts in an effort to launder the proceeds of crime.  While this happens with conventional bank accounts, it is also now happening with digital asset exchange accounts and digital asset wallets. Accounts may have been established for legitimate purposes but later fall under the influence of criminals who utilize them for money laundering. According to a report by the Bangkok Post last month, the Thai SEC had been collaborating with the Thai Digital Asset Operators Trade Association (TDO) and digital asset businesses in order to formulate these new measures.  The standard was also established following consultation with the Bank of Thailand, the Cyber Crime Investigation Bureau, Central Investigation Bureau, the Anti-Money Laundering Office and the Thai Bankers' Association. It is hoped that these enhanced mechanisms will lead to earlier detection of unusual customer behavior, enabling the authorities to intervene at an earlier stage to block mule accounts.Going forward, the regulator will collaborate with the TDO in monitoring and evaluating implementation of the new measures. Individuals who allow their digital asset accounts to be used by criminals will face up to three years' imprisonment and a fine of up to 300,000 Thai baht ($8,765). Blocking P2P platformsAnother change is being implemented in respect of offshore crypto P2P platforms. The objective of that particular measure is to deter and prevent the use of such platforms by investors within Thailand.  It’s envisaged that the Ministry of Digital Economy and Society will now be enabled to move more swiftly in blocking website and application access to these foreign P2P platforms. Such offshore platforms will be deemed to be attempting to solicit local investors if they offer payment options in Thai baht, provide online services or applications using the Thai language or if they accept payments through Thai bank accounts. Earlier this month, Thai law enforcement raided five unlicensed crypto firms. The raid led to the arrest of 11 individuals, charged with illegally operating e-money services related to enterprises responsible for a combined $29 million turnover.